De Lesser Cancels New York Sale and Secures Bridge Loan for Bond Payoff
Real estate firm De Lesser canceled a New York property sale and turned to a bridge loan to secure early bond repayments. Meanwhile, Electra Real Estate raised 200 million shekels to expand its US investments.
Real estate firm De Lesser is navigating severe liquidity challenges, prompting a shift in its strategy to meet early bond repayment targets. The company announced the cancellation of the sale of its Oakland Avenue property in Chester, New York, after declining the prospective buyer's request to extend the due diligence period. To offset this, De Lesser plans to secure a one-year bridge loan of approximately $14 million against the property.
Despite the canceled sale, De Lesser maintains its intention to execute a full early redemption of Series H bonds prior to the release of its third-quarter financial results for 2026. The current principal balance for the bonds stands at roughly 278.8 million shekels, with about 73.3 million shekels already deposited in the series trust account.
The remaining funds required for the early redemption will be sourced through three main avenues: the imminent sale of three assets, including one generating a net cash surplus of approximately $20.85 million expected within the next two weeks, another property sale valued at $43.25 million, and the aforementioned $14 million bridge loan. Company executives express confidence that existing liquidity reserves will suffice to cover accrued interest for the Series H early redemption, as well as upcoming interest payments for Series Z and Series T bonds scheduled for late December 2026.
Meanwhile, Electra Real Estate announced an expansion of its footprint in the United States, raising 200 million shekels via a rights offering. The newly secured capital will serve as a primary catalyst for Electra's ongoing US operations, which encompass multifamily residential complexes, debt funds, single-family rental homes, and hospitality ventures.
